A Visit to the California Earthquake Authority

July 31, 2008


KNX radio commentators were discussing earthquake insurance yesterday. There is nothing like the ground shaking to create attention on our preparation. Putting the disaster kit together and identifying and correcting hazards in your home are essential and relatively inexpensive steps.


However, the commentators were discussing the fact that even though we live under threat of a major earthquake, we seem unwilling to purchase earthquake insurance. The reasons given by most homeowners are the cost and the large deductible. In doing a little research I found that the California Earthquake Authority's web site is a wonderful source of information from disaster preparedness to an on line insurance calculator.



If the recent shake up has piqued your interest, visit http://www.earthquakeauthority.com/ and educate yourself. When the next one occurs, you may be able to limit your damages.

Now We Remember - Earthquakes Do Happen

July 30, 2008

Yesterday we had the first serious earthquake in Southern California in over 10 years, probably since the Northridge quake in 1994. Fortunately, measures had been taken to strengthen buildings and roads and it seems that the 5.4 earthquake did not cause major damage. However, seismologist at Cal Tech warn that after a period of relatively little seismic activity, yesterday's event could signal a time of increased rumblings. They are still in the analysis mode to understand what exactly occurred.

For those of us who live here it is time to check out our disaster supplies - and our disaster plans.

Water bottles, canned food, hand operated can opener, paper towels, rubber gloves, flashlights, battery powered radios, batteries, plastic trash bags, shoes with heavy soles, extra clothes all need to be in an easily accessible spot. If you have a pet, don't forget the pet food.

How do you plan to contact family and friends? We experienced a breakdown yesterday in cell phone service.

Time to walk about your residence and look for pictures that might fly off the walls, books that might fly off the shelves and dishes that will be dumped out of the cupboards. It may be time to install those child proof plastic latches on the interior of your cupboards. Last time I posted on being earthquake prepared, I did go out and buy straps for furniture, but I never did get them installed.

Remember, the emergency preparedness experts recommend having the ability to survive on ones own for 3 to 7 days.

Our procrastination time may be running out!

Rules for Loans - A Response to the Credit Crisis

July 29, 2008

With the passage by the House and Senate of the "Housing and Recovery Act of 2008" lenders are hopeful that some of their credit losses will be modified. In the meantime, underwriting standards are undergoing some crucial changes in response to the laxness of the past several years.

While this is a great real estate market in which to pick up some single family investment properties or who want to buy a new principal residence and turn their present residence into a rental, underwriters have established new rules.

Here are the requirements for obtaining a loan on a new principal residence while still keeping your present residence as a rental. These new guidelines will go into effect on August 1, 2008.

1. There must be documented evidence of at least 30% equity in the your present residence.

2. You will have to have a signed lease on the residence you are keeping.

3. You will have to show evidence that you have received a rent check from your tenant.

Underwriters are attempting to stop the practice of homeowners claiming to be renting their present homes, but who, after the close of escrow on their new residence, cease to make payments on their former residence.

For homeowners who wish to lower their monthly mortgage payments, the new Housing Act may make their lender more willing to renegotiate their present loan. There are legitimate "work out" consultants who can assist is this process.

Time to be Water Wise

July 28, 2008
A friend of mine just took advantage of the City of Redlands free water audit for her property. Water shortages are in the news these days. While not particularly critical in our area, the state is requesting that everyone become more conscious of their water usage. For instance: a dripping faucet can waste 20 gallons of water a month and cost you over $100 each year. Silent toilet leaks can account for hundreds of gallons a week of lost water and can cost you over $500 each year. These small items may seem insignificant, but in terms of water shortages, they can add up..
Dripping faucets are easy to notice, particularly if they are inside your hone. The less noticeable ones are at hose bibs and sprinkler s that do not completely shut down. Toilet leaks are much less noticeable as they may be silent. There is a quick way to check for a silent toilet leak. Remove the toilet tank lid, place ten drops of food coloring in the tank, do not flush, but check the water in 15 minutes. If the water is colored, you've git a leak.
If you call your city water department, they can probably tell you about their water audit program.

38 Nights of Live Theatre

July 25, 2008

Its not 1001 nights of story telling, but it is 38 nights of live theatre designed to entertain, amuse and transport the viewers. This summer is the 36th season of the Redlands Theatre Festival. The festival has been presenting summer repertory theatre in Prospect Park since 1972. The plays for this season include:

Big River

Beehive

Tuesdays with Morrie

The Good Doctor

Beautiful Bodies

These plays are presented in the repertory format with Tuesdays with Morrie this Saturday and the Good Doctor on Sunday. If you want the entire schedule you can go to http://www.rtfseason.org/.

General admission tickets are $18.00. Call 909-792-0562 for reservations.

Working Toward a Solution of the "Housing Meltdown"

July 24, 2008

Yesterday, the House of Representatives approved a housing bill intended to strengthen Fannie Mae and Freddie Mac and "thousands of struggling homeowners". President Bush has allegedly withdrawn his opposition to this bill and once the Senate also passes it, and Bush signs it, it will become law. After months of back and forth over the terms and conditions of the so-called "housing bail-out bill", it is encouraging that are legislators took an actual step toward calming a jittery mortgage and housing market.

Briefly, the bill will allow FHA to back $300 billion in loans. It will provide $3.9 billion in grants to communities for buying and fixing up foreclosed properties. It gives the Treasury Department temporary authority to lend money to Fannie and Freddie or buy their stock. It will create a new government regulator for these two GSEs. It raises the limit on loans that Fannie and Freddie can buy and FHA can insure. And it will provide $15 billion in housing tax breaks and $11 billion to states for low interest loans to first time buyers, construction of low income rental housing and subprime mortgage refinancing.

It is a complicated piece of legislation and the fact that it was considered at all illustrates the major importance that housing plays in the total U.S. economy.

A Trip to OZ

July 23, 2008

Its time to enjoy a fantasy trip! With all the negative news out in our world, it will be a treat this Thursday, Friday and Saturday to attend the production of "The Wizard of Oz". Those of us in the business of selling homes have been excited by the theme of the Redlands Bowl's 85th season, "There's No Place Like Home".

This classic piece of show biz is based on the 1939 movie that made Judy Garland famous. The Redlands Bowl production is directed by Lifehouse Theater founder Wayne Scott. In 2000, Scott had directed his own version of "The Wizard of Oz". The scenery and the staging are very creative and the audience is sure to be transported to another time and place.

The show begins at 8:15 p.m. As always, there is no charge, but as the Community Music Association likes to remind us, "The shows are not free". At intermission the red bowls will be passed and a generous donation will keep the treasure of the Redlands Bowl alive.

Redlands may not yet have its "Emerald Necklace" but for three evenings it will have an "Emerald City".

Latest Gossip Item? Fannie and Freddie

July 22, 2008

It is interesting to have Freddie Mac and Fannie Mae so prominent in the media. Op ed pieces, news releases, interviews abound. The question: Are Freddie and Fannie going together? That is, are they both going to fail ? This morning on Bloomberg News, the interviewee in addressing Freddie Mac seemed to think it will not need government intervention to bail it out. At the moment there seems to be less talk about Fannie Mae than about Freddie Mac. However, they are closely linked because they are the same type of entities.

So what are they? They are GSEs, government sponsored enterprises.

Fannie Mae was created in 1938 by President Franklin D. Roosevelt to expand the flow of mortgage funds to all communities, at all times, under all economic conditions, and to help lower the costs to buy a home. In 1968, Fannie Mae was rechartered by Congress as a shareholder-owned company, funded solely with private capital raised from Wall Street and around the world.

Freddie Mac was created in 1970 and is a stockholder-owned corporation chartered by Congress to increase the supply of funds that mortgage lenders, such as commercial banks, mortgage brokers, savings institutions and credit unions, can make available to homebuyers and multifamily investors.

At one time, home mortgage lenders would make loans from their deposit assets. They were limited by the amount of their deposits in the amount of lending that they could do. The loans that they made were held in their asset portfolios. With the establishment of , first Fannie Mae, the Federal National Mortgage Association, and then Freddie Mac, the Federal Home Loan Mortgage Corporation, the sale of loans form lenders to these entities allowed the lenders to replenish their supply of funds and thereby make additional loans. The fear that is present in the credit markets has spread to concern about these two purchasers of loans.

This will probably be an ongoing news item for some time. Some of it may in fact be "gossip". Some of course may well be reality.

Here's a Daring Strategy

July 21, 2008

Back in the 1990s downturn in real estate sales. a book came out suggesting that the way to sell your property was to price it 10% under the price shown in a market analysis. I don't remember the name of the book nor the author, but I do remember suggesting the strategy to several sellers. Unfortunately few dared to try the strategy but rather listed at the market analysis price and after time kept lowering their asking price. For the few that tried the market value minus 10%, the strategy worked more often than not and in fact often led to multiple offers and the seller ended up with the market price.

This strategy would be useful in this market. Yes, it would probably make the decline in value in the overall real estate market happen more quickly, but the sellers could get on with their lives.

In fact, a few months ago I read a posting on the Redfin Sweet Digs blog that suggested that in the present market conditions, sellers should definitely consider the minus 10% list price, The poster also suggested that that price was still based on looking back at sales. To adequately attract buyers, sellers should consider applying an additional minus 10% to their list price.

Interestingly, there was an ad in the LA Times on Sunday that gad a builder reducing the asking price of a new $2,000,000 home by 50% to an ask of $1,000,000. (The actual prices were slightly different.)

To the sellers who dare, buyers should come. There is already evidence that bank repos that are listed at a discount from the market value do receive multiple offers, particularly in the under $350,000 market. Higher priced sellers who truly want to move, should seriously consider this strategy.

A Great Tradition of Summer - Junior University

July 18, 2008

I first heard of San Bernardino's Junior University several years ago when one of our agents had a daughter involved in the program. She came with a proposal to our Charity Committee for underwriting a performance. As a result, Century 21 Lois Lauer Realty became an annual supporter of the program as we had funds available.

Tonight will begin the junior University's 46th season. At 8:15 this evening "The Jungle Book"

will be performed in the Roosevelt Bowl at Perris Hill Park, 1001 E. Highland Avenue, San Bernardino, CA.

Performances will continue at 8:15 p.m. on Saturdays, Sundays and Tuesdays through Fridays. The season will end on August 2, 2008. Tickets are $8 for adults, $4 for children and $20 for families. Tuesday performances are free.

If you have never attended a Junior University event, you should definitely consider doing so. These are quality performances and will make you proud of our San Bernardino youth.

California Cities Still Among the Fastest Growing

July 17, 2008

As a member of the California Association of Realtors (C.A.R.), I receive a weekly newsline with a variety of data about the real estate industry and about the association. I received one yesterday and the article concerning the release of the U.S. Census Bureau population report caught my attention - especially because the headline stated that five California cities were on the list of the fasted growing cities in the U.S. I quote from the C.A.R. article:

"While there are signs of a slowdown in migration to the West and sunbelt region, California continues to see steady population growth, placing five cities on the list of the 25 fastest-growing large municipalities in the country between 2006 and 2007, according to new population estimates from the U.S. Census Bureau.

According to the report, Victorville, California saw a population increase of 9.5 percent to 107,232 in 2007, putting the San Bernardino County city second on the list of the nation's fastest-growing large cities with populations of 100,000 or more....

The other four California cities that made the list are Bakersfield; Irvine; Moreno Valley; and Visalia."

As the housing market stabilizes, the growth in population should help the demand side of the supply and demand equation.

Its Time to Stop and Smell the Roses

July 16, 2008


Its time to stop and smell the roses - or the mimosa blossoms, or the sweet alyssum or the honeysuckle or the gardenias or the petunias. Just driving around our neighborhoods can be a sensual treat. Visually the crepe myrtle trees are in full bloom and the agapanthus line many flower beds. With messages of doom and gloom all around us, it is time to stop and enjoy the beautiful sights and smells that surround us. I even get thrilled by the smell of my 2 tomato plants and the small growing green tomatoes!


Like most things, our gardens need our attention and our care. Keeping the spent blossoms picked will encourage more blooms in the future. Soon the gardenias will have finished their blooming time and that will be a good time to prune for the future. If you want more color and more aromas, this is still a good time to visit your local garden store and purchase some colorful annuals.


Don't let yourself succumb to the doom and gloom!

A Different Meaning for "Workout "

July 15, 2008

I read an article in the July 21, 2008 issue of Forbes Magazine entitled "Workouts Work Out".

The article described a company in Dearborn, Michigan that works as a mediator between lenders and overextended homeowners. Moose M. Scheib, the owner of the company, claims to have saved 3,900 harried loan customers of Litton, HSBC, Washington Mutual and Countrywide since January 2007. A tenth of his customer have come from www.loanmod.com.

Other than the article in Forbes Magazine, I know nothing about the company. I do know that a number of loan modification consultants have sprung up. They purport to assist overextended homeowners with their lenders. Like any service being offered, it is important to check references and compare fees. Folks under the threat of losing their homes are vulnerable to unscrupulous consultants.

Working with lenders in these turbulent times can be frustrating. It requires diligence to find the responsible entity and persistence to obtain an answer or a proposal. If a consultant has developed a relationship with a lender's loss mitigation department, the chances of success are improved. Just because the process may be difficult is no reason not to seek a "workout" with your lender. It will prove beneficial to both you and the lender.

These "workouts" can be beneficial to your mental wellbeing!

Scary Times and Its Not Yet Halloween

July 14, 2008
For those of us who are addicted to following the financial news, July has been a scary time. What with the stock market declining, Indy Mac being taken over by the FDIC and the news reports that Freddie Mac and Fannie Mae are on the verge of insolvency, one could really panic. My recommendation is "Don't panic". As I heard several commentators on Bloomberg News say this past week, both Freddie and Fannie have billions in reserves. While they have much more than that in loans, not all loans are failing.
The proliferation of news and the constant bombardment on radio and TV about the credit crisis, tends to create panic. For homeowners with high loan to value mortgages, concern is valid. To me, the bright side is that because there are so many borrowers caught in the same money crunch, the federal government as well as the lenders are hard at work to find ways to prevent massive defaults. If you are one of the borrowers caught in the crunch, don't put your head in the sand. Contact the lender or perhaps better yet, contact a real estate agent who may have contacts that can interface with your lender.
This will be a time to cut back on expenditures, but weathering the credit crisis and keeping a place to call home will be worth it in the future. Just ask some of the upside down homeowners from the last downturn.

So Many Choices

July 11, 2008

There are so many summer activity choices that are available for residents of the Inland Empire. I will mention a few that are kicking off this evening and a few that are on going.

The Redlands Theatre Festival begins its 36th season with a performance tonight at Prospect Park. The opening show of the repertory season will be "Big River'. Tickets are $18 for general admission. For information call 909-792-0562 or go to http://www.rftseason.org/.

In Rialto, the Rialto Community Players production of "All the Great Books" will open this evening at the Rialto Playhouse, 150 E. San Bernardino Avenue. Tickets are $8. For more information call 909-873-8514 or go to http://www.rialtocommunityplayers.org/.

The Summer Music Festival at the Redlands Bowl will be hosting a performance of the Pacifico Dance Company. There is no admission charge, but the bowls for a voluntary contribution will be passed at intermission. Information: 909-793-7316

Opening this evening is the Summer Movies program sponsored by the City of Redlands, but underwritten by community business. Century 21 Lois Lauer Realty will be underwriting the July 25th showing of "All Dogs Go to Heaven'. The movies are shown at Brookside Park on Fridays and Texonia Park on Sundays. There is no charge. This week the movie is "Surfs Up". For more information call the Redlands Community Center at 909-798-7572.

For those of you who know of other events throughout the 2 county area, add the information by clicking on the comment tab.

Median Home Prices/June 2008/2007/2003

July 10, 2008
The topic of the current status of the real estate market seems never far from any casual conversation, news headline or TV commentary. I, too, contribute my data collection. Since I am a data-nut, I enjoy collecting the data and passing it on to anyone who is interested. Since, as I said yesterday, I am not an economist nor, I might add, a statistician, my bias is to just present the raw data and let the person reading it make the interpretation. So for those of you who are interested in median prices, here is some data. This is data reported through the IMRMLS for the month of June 2008, 2007 and 2003. I went to 2003 since it is commonly believed that the up cycle began sometime in 2003-2004. Banning/Beaumont........2008/$240,000.....2007/$285,000.....2003/$164,900
Bloomington....................2008/$200,000.....2007/$375,000.....2003/$175,000
Colton...............................2008/$201,000,,,,,2007/$350,000.....2003/$182,500
Fontana............................2008/$270,000.....2007/$399,000.....2003/$205,900
Grand Terrace................2008/$299,900.....2007/$370,000.....2003/$206,500
Highland..........................2008/$240,000.....2007/$345,000.....2003/$198,900
Loma Linda.....................2008/$270,000.....2007/$435,000.....2003/$195,000
Mentone...........................2008/$269,600.....2007/$343,000.....2003/$143,900
Moreno Valley................2008/$200,000.....2007/$358,000.....2003/$181,000
Redlands.........................2008/$300,000.....2007/$395,000.....2003/$227,000
Rialto...............................2008/$222,500.....2007/$350,000.....2003/$182,500
Riverside.........................2008/$265,000.....2007/$402,600.....2003/$214,950
San Bernardino..............2008/$160,000.....2007/$295,000.....2003/$134,000
Yucaipa/Calimesa.........2008/$295,000.....2007/$329,000.....2003/$196,500

A caveat: The median price is arbitrarily chosen as the price of the reported sale that is at the halfway point of the total sales reported. i.e. if 50 sales are reported it would be the price of the 25th sale. Half of the homes sold for less and half sold for more.

Raw Data vs. Economists' Opinions

July 9, 2008

Two headlines in this mornings Press Enterprise Newspaper caught my attention. The L A Times also had similar headlines. One headline stated "Home sales likely weak into 2010". The second, smaller headline, stated "House sales up in the state". The articles that followed the headlines quote the opinions of several respected economists. For all the potential home buyers and home sellers who are waiting for the signal that the real estate market has "bottomed out", the commentary of respected economists can be a guide. Since, I am not an economist and do not have the expertise or tools that an economist has, I can only watch the raw data. I also have been in the trenches during three other downturns. In this blog, I shall continue to post the monthly and quarterly data for the Riverside/San Bernardino real estate market place in the belief that the data will point to a change, however slight the change might be, in the real estate market.

I do think that Robert Kleinhenz, the California Association of Realtors deputy chief economist, did offer an explanation as to why the volume of sales is increasing. The decline in prices has been five times greater than the rest of the nation, according to Kleinhenz. Riverside and San Bernardino counties median price was down almost 38% from its peak in June 2007. Later this week I shall post the median prices for June 2008, 2007 and 2003. You can draw your own conclusions.

Riverside/San Bernardino Counties Residential Sales Statistics - 2nd Quarter

July 8, 2008

It is interesting to note that in several of our market areas, the numbers of units sold are returning to the 2003 level. It is my theory that the number of homes sold will need to come back to the 2003 level in order for the real estate market to stabilize. When the number of homes sold is as low as it was in 2007, prices fall because sellers need to make a sale. Here are the numbers for 2nd quarter 2003-2008.

Banning/Beaumont.....2008/274.....2007/167.....2006/289.....2005/291.....2004/284....2003/228

Bloomington.................2008/32.......2007/20.......2006/70.......2005/65.......2004/57.......2003/63

Colton............................2008/67.......2007/61........2006/136.....2005/147.....2004/96.......2003/143

Fontana.........................2008/537.....2007/268.....2006/654.....2005/852....2004/650.....2003/694

Grand Terrace.............2008/22.......2007/20.......2006/28........2005/24......2004/17......2003/22

Highland.......................2008/114......2007/97.......2006/202......2005/230....2004/179.....2003/223

Loma Linda..................2008/41........2007/31.......2006/50........2005/54.......2004/46.....2003/42

Mentone.......................2008/21........2007/15.......2006/25........2005/30.......2004/27......2003/24

Moreno Valley.............2008/697......2007/240....2006/792.....2005/879......2004/758...2003/668

Redlands......................2008/144.....2007/163......2006/212......2005/237.....2004/250...2003/233

Rialto............................2008/201....2007/105......2006/303......2005/360.....2004/318...2003/348

Riverside.....................2008/878....2007/580......2006/1062....2005/1397....2004/1199....2003/1133

San Bernardino..........2008/424....2007/267......2006/662.......2005/705......2004/641.....2003/744

Yucaipa/Calimesa......2008/248....2007/135....2006/188.....2005/237...2004/208....2003/210



The posting does not chart as well as I would like, but hopefully you can decipher the numbers. In all areas they are better than 2nd quarter of 2007.

Closed Sales Reported through IMRMLS/June

July 7, 2008

Based on the closed transactions for residential real estate in our Riverside/San Bernardino area, its beginning to look like sales have bottomed out in terms of the number of transactions. Later in the week I will check out median prices. In order for the market to firm up, it is necessary for the number of transactions to increase. In most of the municipalities, this happened with June closings.

Banning.Beaumont.....2008/95.....2007/61.....2006/126.....2005/97.....2004/102.....2003/89

Bloomngton.................2008/14.....2007/9........2006/22.......2005/27.....2004/22.......2003/19

Colton...........................2008/34.....2007/19......2006/60......2005/59.....2004/29.......2003/57

Fontana.......................2008/215....2007/83.....2006/217.....2005/312...2004/237.....2003/224

Grand Terrace...........2008/8.........2007/8.......2006/10.......2005/11.....2004/4.........2003/9

Highland......................2008/39......2007/21.....2006/63.......2005/73.....2004/60......2003/70

Loma Linda.................2008/13......2007/11......2006/20......2005/19.....2004/13......2003/18

Mentone......................2008/7........2007/3........2006/9.........2005/12.....2004/11......2003/11

Moreno Valley...........2008/264.....2007/89......2006/259....2005/351...2004/254...2003/209

Redlands....................2008/46.......2007/56.......2006/79.......2005/84.....2004/88.....2003/82

Rialto..........................2008/68.......2007/31.......2006/107.....2005/116...2004/123....2003/119

Riverside....................2008/340....2007/210.....2006/365....2005/490...2004/436....2003/392

San Bernardino.........2008/152....2007/93.......2006/215.....2005/247....2004/242...2003/233

Yucaipa/Calimesa.....2008/50.....2007/53.......2006/74........2005/81......2004/74.....2003/81



One month does not make a trend. As I post the data for the first half of 2008, it may show a clearer direction.

Happy Fourth of July to America the Beautiful

July 4, 2008


The lyrics for the song "America the Beautiful" were wrotten by Katherine Lee Bates, an instructor at Wellesley College following a trip to the top of Pikes Peak, Colorado in 1893. Those of us in Southern California know that we live in a beautiful country and the song describes our land.


O beautiful for spacious skies,


For amber waves of grain,


For purple mountains majesties


Above the fruited plain!





America! America!


God shed his grace on thee,


And crown thy good with brotherhood


From sea to shining sea!





For those of you who might want to know more about this lovely hymn, you can go to Wikipedia.com

Celebrating the National Holiday

July 3, 2008
Through out the Inland Empire there will be celebrations and fireworks tomorrow. I know that Yucaipa, Riverside, San Bernardino , Rancho Cucamonga and Redlands have special events to mark the birth of our nation.
In Redlands, the University Stadium will be crowded with folks eager to see the spectacular show put on by the Fourth of July Committee. The theme this year is Happy Birthday America.
Of course during the entire day there will me opportunities to meet, greet and celebrate. Beginning at 10a.m., Sylvan Park will be filled with booths sponsored by many service clubs and not for profit organizations. There will also be live entertainment including the Fourth of July Band under the directorship of Curtis Allen, Sr. There will be a parade at 4 p.m. which will start at Franklin Elementary school and circle around Sylvan Park. The live show at the stadium will begin at 7 p.m. Tickets are $10 at the gate, but if you buy them today they are $7. Children under $3 are free. Reserved seating is available in the bleachers for $15.
Weather is predicted to be perfect and no matter which city you choose for your celebration, remember that it is our nation's birthday that is being honored.

Inland Empire Listing and Pending Statistics/June 2008

July 2, 2008


We are now at the halfway mark of the Year 2008. As we begin July, here are the number of single family residential properties listed and in escrow as reported through the IMRMLS.


Banning/Beaumont.......Listed/802...........In Escrow/222...........% in escrow/28%


Bloomington...................Listed/223............In Escrow/44............% in escrow/20%


Colton..............................Listed/345............In Escrow/72............% in escrow/21%


Fontana...........................Listed/1808.........In Escrow/505..........% in escrow/28%


Grand Terrace...............Listed/56..............In Escrow/16............% in escrow/29%


Highland..........................Listed/367............In Escrow/102.........% in escrow/28%


Loma Linda.....................Listed/93..............In Escrow/13...........% in escrow/14%


Mentone..........................Listed/63..............In Escrow/14...........% in escrow/22%


Moreno Valley................Listed/2004.........In Escrow/796.........% in escrow/40%


Redlands.........................Listed/429............In Escrow/73...........% in escrow/17%


Rialto...............................Listed/833............In Escrow/237.........% in escrow/28%


Riverside.........................Listed/2601..........In Escrow/737.........% in escrow/28%


San Bernardino..............Listed/1966...........In Escrow/414........% in escrow/21%


Yucaipa/Calimesa..........Listed/443............In Escrow/61...........% in escrow/14%





As the April and May statistics indicated, the Moreno Valley market is picking up its listing to in escrow ratios. Many of the properties being sold are bank owned and the pricing has been attractive to buyers. This is still very much a price driven market.

Supporting Homeownership in America

July 1, 2008

The information I am using for this post comes from an article in Realtor Magazine of May 2008.

The magazine was dedicated to the 1ooth anniversary of the National Association of Realtors. Throughout the 100 years the Association had a number of different names, but the merging of one name into a new name did not changed the basic goals of the organization.

According to the article, Homeownership in America, by 1900, nearly 40% of Americans were living in urban area, double the percentage from the mid 1800s. Of the urban dwellers, 75% were renters. In 1914, local boards of Realtors put their energy into a new homeownership campaign that had been launched by the U.S. Department of Labor. The "Buy a Home" campaign told the American public that homeownership was in the national interest. During the First World War, the campaign was shelved. After the was, the campaign was relaunched and renamed "Own Your Home". In spite of this effort, renting outpaced homeownership.

At this point, the need for adequate financing became a focus. In 1923, the association formed a mortgage finance division whose goal was to develop low cost financing for mortgages on small homes. Annual contests were held for the best small houses erected.

In 1931, President Herbert Hoover held a White House Conference on Homeownership and Housing which result in the establishment of the Federal Home Loan Bank Act. In 1938, the Federal National Mortgage Association was formed to purchase mortgages so that banks would have their supply of funds for new mortgages replenished.

Homeownership peaked in 2005 with 68.9% of the population owning homes. As was the economic history of America with ups and downs in the housing market, we are experiencing a retrenchment. But as in past down cycles, the federal government develops new strategies to ease the crises rising from the downturn. It has been certainly since the 1900s that Americans believe that homeownership is a goal in mankind's pursuit of Happiness.